Tower plan could doom iconic music venue

By Aisha Dow

Melbourne icon the Palace Theatre is set to be demolished and replaced with an opulent 5-star hotel and apartment complex with a $180 million price tag.

The 30-storey project on Bourke Street is being proposed by Melbourne's Jinshan Investments, owned by businessman Xian Xu, and would boast Australia's first “W Hotel”.

An artist's impression of the proposed development.

If approved it would spell the end for the former Metro Nightclub - a building some say should be protected because of its heritage value.

And the National Trust say the Bourke Street proposal is continuing a dangerous precedent on exceeding height limits, which began with the controversial Hotel Windsor development.

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"Now the Windsor has opened the door, now all the developers are rushing through it," conversation manager Paul Roser said.

"I think in 20 years this precinct could be transformed unless the minister draws a line in the sand."

Under the plan submitted to the Victorian government, nothing of the century-old theatre would remain.

Instead, built over 40,000 square metres, “W Melbourne” would be home to a 205-room hotel and 145 apartments.

Development manager Tim Price, from Sinclair Brook, said a W Hotel in Melbourne would be a tourism destination in itself, attracting big spenders who splash over $1000 in the city for every night they stay.

It would also generate 620 jobs once built, plus another 300 during the construction phase.

Mr Price said the design was respectful to the “mature” location, near Parliament House and surrounding heritage properties.

“It will really help to revitalise the ground level of the site, with an introduction of a new laneway from Bourke Street through to Little Bourke Street,” he said.

However the project will be opposed the Melbourne Heritage Action group, who want to see the interior of the building preserved.

Spokesman for the community-based lobby group, Rohan Storey, said interior of the former amphitheatre was more significant that it's façade.

“But the city of Melbourne can't or hasn't protected any interiors yet,” Mr Storey said.

Melbourne City councillor Ken Ong took a different view. The chair of the planning committee said the exterior of the building might, in fact, be the part of the building worth protecting.

“I'll let the heritage experts fight it out over the heritage frontage,” Cr Ong said.

“From heritage perspective I hope it respects the planning controls and heritage overlays in the area.”

The flagship development will be designed by Melbourne's Bates Smart Architects, who have worked extensively on Crown hotels.

Subject to approvals, construction on the project could start as early as next year and be completed in late 2016.